KUALA LUMPUR: Dialog Group Bhd’s wholly-owned subsidiaries, Dialog LNG Sdn Bhd and Pengerang LNG (Two) Sdn Bhd (PLNG-2), have entered into a shareholders’ agreement with Petronas Gas Bhd for the development of liquefied natural gas (LNG) regasification facilities at Pengerang, Johor.
The total estimated cost of the Pengerang LNG project is about RM2.7 billion, Dialog Group said in filing to Bursa Malaysia.
The project comprises a regasification unit and two units of 200,000-cubic metre LNG storage tanks with an initial send-out capacity of 3.5 million tonnes per year, equivalent to about 490 million standard cubic feet per day of natural gas.
The agreement will pave the way for Dialog, Petronas Gas and State Secretary, Johor Incorporated (SSI Johor) to be strategic business partners in the equity ownership and development of the Pengerang LNG project.
Following the agreement, Petronas Gas will own 65 per cent
in PLNG-2, Dialog LNG (25 per
cent) and SSI Johor (10 per
cent).
PLNG-2 is a special purpose
vehicle that will undertake the Pengerang LNG project. Bernama